North Macedonia’s ESM secures loan, grant for solar projects, wind farm Bogdanci

North Macedonian power utility Elektrani na Severna Makedonija obtained a loan for the construction of solar power plant Bitola 2 and the expansion of its Bogdanci wind farm. It also received a donation for photovoltaic projects Bitola 1 and Oslomej 2.

Elektrani na Severna Makedonija (ESM) will install more solar power plants within its coal mining and energy complexes REK Bitola and REK Oslomej. The state-owned company pioneered such projects in the Western Balkans in 2022, when it set up the first PV plant on an abandoned coal pit in Oslomej.

ESM said it is starting a new cycle of investments in renewable energy sources with a favorable loan from Germany’s KfW Development Bank. The proceeds would be used for the Bitola 2 PV project and the second phase of the Bogdanci wind farm.

The Ministry of Finance has issued the state guarantee for the EUR 55 million loan. It envisages a repayment term of 15 years and a five-year deferment, ESM revealed.

Uzunčev: We continue to pave the way to a sustainable energy scenario

The loan agreement was signed by KfW’s director for Kosovo* and North Macedonia Moritz Remé, and ESM’s President of the Board of Directors and General Manager Lazo Uzunčev. Minister of Finance Gordana Dimitrieska-Kočoska and Moritz Remé have signed the guarantee contract.

CEO Lazo Uzunčev said ESM sees KfW as a serious partner for strengthening the stability of the North Macedonian power system. Thanks to the excellent relations with the bank, the company is continuing to pave the way for a sustainable energy scenario by implementing renewable energy projects, he asserted.

Of note, ESM invited companies already in August 2020 to express interest in the delivery and installation of equipment for the expansion of wind park Bogdanci, with a capacity of 36.8 MW. The company planned to build three or four more turbines and add up to 15 MW.

Bogdanci was put into operation in 2015, and KfW approved a loan for the second phase in December 2018.

Grant for solar power plants

ESM also signed a EUR 5 million grant agreement with the European Bank for Reconstruction and Development (EBRD). The funds are for the construction of two PV facilities – Bitola 1, with a capacity of 20 MW, and Oslomej 2, of 10 MW.

In late November, the company announced a call for contractors for the two power plants. The sites are within REK Bitola and REK Oslomej. ESM plans to complete them by 2026.

Božinovska: The two projects will provide enough electricity for more than 7,000 households

Minister of Energy, Mining and Minerals Sanja Božinovska said the facilities would produce a combined 46 GWh per year, enough to cover the electricity needs of more than 7,000 households in North Macedonia. “The energy transition represents a vision for the future in which we will have clean energy, a healthy environment, and economic prosperity,” she stated.

The two projects, in her words, will also enable the recultivation of 45 hectares of land within REK Bitola and REK Oslomej. It will make the environment in Bitola, Kičevo and the surrounding area healthier, Božinovska stressed.

Fatih Türkmenoğlu signed the contract on behalf of the EBRD.